SUBIC BAY Freeport, Philippines - The Subic Bay Metropolitan Authority (SBMA) on Monday announced that it has recorded P789 million profit in 2012, the highest profit it posted since it began its operation 20 years ago.
SBMA Chairman and Administrator Roberto Garcia said the turnaround from the P1.2 billion loss in 2011 was owing to higher evenues, reduced operating expenses and favorable exchange rate.
The increase in revenues, Garcia said, can be attributed to major projects such as the operations of Vale ore transshipment and the start of commercial operations of phase 2 of the new container port.
Garcia added that operating expense of the agency decreased by seven percent compared to previous year after implementinng austerity program. Salaries dropped seven percent as a freeze hiring policy was implemented and manpower count decreased. Repairs and maintenance expenses likewise decreased by 46 percent, and advertising expenses were slashed by 35 percent.
As a result, earnings before interest, taxes and depreciation (EBITDA) jumped from P329 million in 2011 to P629 million or a 91-percent increase.